Le Meridien to offer hotels in sale-leaseback deals

U.K.-based hotel group Le Meridien said yesterday it is restarting fund raising by offering 10 top continental European hotels in a sale-and-leaseback deal to bring in up to (ps)400-million.

The company will start marketing the 10, which include the Ritz hotels in Madrid and Barcelona and the Eden in Rome, over the next few months as part of the group's three-year plan to become totally debt free. Meridien was bought by Japanese investment bank Nomura 8604.T for (ps)1.9-billion in May 2001 and partially funded by a (ps)1.2-billion sale and leaseback of 11 of its U.K. top hotels, including the Grosvenor House and Waldorf.

National Post

Making The Ideal Hotel Investment

By Stephen Rushmore, MAI, CHA, CRE, 
president and founder of HVS International

I have been helping people buy and sell hotels for the past 30 years and also have acquired a few for my own account. Hotels are complicated, high-risk investments that require specialized operational expertise or you will run the risk of quickly losing a substantial amount of capital. Over the years, I have developed a set of criteria that I use for making hotel investments and would like to share this information with you.

Following these criteria for making a hotel investment may not always guarantee success, but they do illustrate some of the potential pitfalls that I have experienced over the years. Good luck and may your next hotel investment be successful.  

Stephen Rushmore, MAI, CHA, CRE, is president and founder of HVS International, a global hotel consulting firm with offices in New York, San Francisco, Denver, Miami, Dallas, Vancouver, Toronto, New Delhi, Singapore, Sao Paulo and Buenos Aires

PwC gives ‘boutique’ the boot, chooses ‘lifestyle’

e-Tid.com  -  PricewaterhouseCoopers has issued a survey into the European ‘lifestyle’ hotel, a term that PwC says is a more accurate definition of the sector than the Shrager-coined term ‘boutique.’ ‘As a diverse range of properties began to claim the boutique label, our research has shown that the term ‘lifestyle hotel’ more accurately describes and defines the boutique,’ the survey says. PwC also includes ‘town house properties’ under the lifestyle banner.

Definitions aside, the sector is in line for 87% growth over the next five years. PwC’s survey talked to 18 operators responsible for 92 hotels providing 8,000 rooms. Within five years members of this sample group are planning to open another 6,822 rooms in 87 new hotels.

PwC admits that the ‘lifestyle sector’ is small, admitting that its calculation of ‘less than 1% of the total hotel stock’ is an underestimate. The sector however ‘remains highly significant in its ability to shape and influence the future structure and face of the entire hotel sector.’

Le Meridien’s ‘Art + Tech’ redesigns, plus some recent moves by Hilton, are seen as a response to the lifestyle sector, while Starwood and Millennium Hotels have introduced brands which develop lifestyle concepts. The sector’s biggest player, however, is Sorat Hotels, Germany-based with 23 hotels, seven of which are partnership deals.

In revenue terms, 19% of lifestyle hotels fall within the upper upscale category - €250+ for a single room. The customer mix is 32% leisure, 68% business.
More than half the hotels were bookable online (57%) but the average property took only 7% of its bookings over the net.

Club Med eyes U.S. for more closures: Shut 15 resorts last year
 
Club Mediterranee SA shares advanced as much as 5.7% after Europe's largest resort operator said yesterday it may close two or three more holiday villages in North America.

The shares climbed as much as 1.3 euros to 24.3 euros, their biggest gain in 2 1/2 months, and were trading at 23.6 euros as of 4:55 p.m. in Paris.

The French company shut 15 resorts in the past year, including sites in the Bahamas and Mexico, to reduce costs after last year's terrorist attacks reduced demand for travel. The cuts left it with 105 villages open to receive guests.

"One or two American villages are being examined," Philippe Bourguignon, chairman, told La Tribune newspaper. He wants to make the North American business profitable c it quoted him as saying.

Company spokesman Thierry Orsoni said the possible closures were being studied in relation to Club Med's plan to focus only on more luxurious resorts.

He said one of the sites closed last year was being reopened and that Club Med has reached an agreement to sell holidays via vacation.com.

Mr. Bourguignon was speaking at a presentation of Club Med's winter catalogue in Tunisia.  

Jordanian tourism revenues increase for first time in two years 

AFP - Jordan's tourism revenues increased by 7.9 percent in the first eight months of 2002 in the first rise in two years, according to central bank figures published Tuesday.

The country earned a total of 532 million dollars from tourism in the first eight months of 2002 compared with 492 million dollars during the same period in the previous year, the central bank indicated in a report.

The number of tourist arrivals also climbed by 2.8 percent during that period, due primarily to a 16 percent increase in the number of Arab tourists visiting the kingdom.

But the overall number of US and European tourists fell in 2002 as a result of the impact of the September 11, 2001 terror attacks on the United States and the anti-Israeli Palestinian uprising that erupted in September 2000.

The number of US arrivals fell by 13.6 percent, while the number of European tourists was down by 33.3 percent, the figures showed.

Tourism revenues for 2001 in Jordan stood at 700 million dollars or 10 percent of the gross domestic product while in 2000 Jordan earned more than 800 million dollars from tourism.

Jordanian experts recently warned that tourism revenues would be dramatically cut back in case of a US military operation against Iraq, Jordan's large eastern neighbour.

More space wanted at AIME 2003

The AsiaPacific Incentives and Meeting Expo 2003 in Melbourne is expected to be a bigger show than the previous year, with the organiser reporting that many exhibitors are opting for larger space.

AIME 2003 is to be held on February 18 and 19 at the Melbourne Exhibition and Convention Centre, Australia.

"There has been a great response to AIME 2003 with many companies that exhibited for the first time in 2002 returning, and others extending their space. Exhibitors definitely see value in AIME," said Rosemarie Sama, head of sales, AIME.

First time exhibitors include Moscow and Vietnam, whilst Fiji, Tahiti, Bali, Sabah and Sarawak will all increase their space.

AIME is the southern hemisphere’s most significant event for the incentive and meetings industry, drawing around 600 exhibitors from more than 50 destinations throughout the Asia Pacific region, the Middle East, South Africa, Europe and the USA and Canada.

Reed Travel Exhibitions organises AIME and also EIBTM, the annual exhibition for the incentive, business travel and meetings industry held 20 – 22 May 2003 in Geneva, Switzerland.

For further information on exhibiting or attending AIME, visit the AIME website at

www.aime.com.au or www.reedtravelexhibitions.com

Indian Hotels eyes properties in U.S., China

(Reuters) - Indian Hotels Company Ltd (IHTL), the country's largest hotel chain, aims to establish a presence in the United States and China as part of its growth plans, a senior company official said on Tuesday.

Indian Hotels, which operates the Taj group of hotels and is owned by the Tata group, currently has 16 foreign properties, the majority of them in the Indian Ocean rim. It does not own or manage any hotel in the U.S. and China.

"We would like to have a small, affordable hotel chain that would give us a balanced geographical presence," R.K. Krishna Kumar, managing director of Indian Hotels, told a news conference in the eastern Indian city of Calcutta.

"Ideally, we would like to be in our major source market, the United States, and may be even in China. In five to eight years' time, there will be a lot of (tourist and business) traffic in China."

He did not elaborate.

Kumar said the Indian hotel industry was showing "early signs of recovery" from the slump induced by the air attacks in the United States on September 11 last year.

"Occupancy has gone up," he said, without elaborating. India's hotel industry, already reeling under a slowdown in the local economy last year, was jolted after the attacks.

Indian Hotels earned a net profit of 20.20 million rupees on total income of 1.17 billion rupees in April-June 2002.

The firm's shares closed at 150 rupees at the Bombay Stock Exchange on Tuesday, down nearly one percent from Monday's close of 151.35 rupees. The benchmark index ended up nearly one percent.  

First Best Western Opens in Yemen

Best Western International, THE WORLD'S LARGEST HOTEL CHAINR, enters a new territory with the affiliation of Best Western Hadda Hotel in Yemen. The hotel is located in the serene environs of Sana'a where the oriental atmosphere mingles with the generous hospitality of the hotel.

Catering to both business and leisure travelers, this four-star, deluxe hotel features 70 luxurious and tastefully decorated rooms. The hotel is just a 20 minute drive from Sana'a International Airport and is in close proximity to various tourist attractions such as the Sana'a Museum, war museum, Al Thura Park and Sana'a zoo.

The hotel lobby features fountains leading to a meeting place. The fully equipped health club includes an exercise room, sauna, massage, Jacuzzi and steam room. The hotel also boasts a sprawling tennis court and swimming pool.

Best Western Hadda Hotel also has a main restaurant (Al Sahira), 'Moka' coffee shop, and Al-Khema Fanos - a traditional tent catering to snacks and Shisha (traditional equipment for smoking). The beautifully decorated halls - Taiz and Mareb and Super Club - offer professionally handled conference and banquet facilities and can accommodate up to 500 guests.

Anand S. Gupta, CEO, of Best Western Hotels in South Asia handed over the Best Western membership plaque to Taufiq Al Khamiry, chairman, Best Western Hadda Hotel during his recent visit to the property.

Announcing the affiliation, Mr. Gupta said, The tie up between Hadda Hotel and Best Western adds a new country to the Best Western bouquet. This indeed is an expansion of the Best Western's horizon. The affiliation takes the Best Western count to 24 hotels throughout India, Pakistan, Bangladesh and Middle East.

As part of the Best Western brand, the hotel complies with
BestRequests(tm) - the global product standards of Best Western. Other facilities offered are direct-dial telephone, color television in every room, free Continental breakfast, 24-hour room service, laundry service and more.

The hotel will benefit from Best Western's worldwide toll-free reservation system, as well as 37 sales offices, six General Sales Agents and five Central Reservation Offices around the world, quality assurance standards, training and support services.

The hotel will be available on all airline systems and major Travel websites. Best Western strives to build guest loyalty for its member hotels with its Gold Crown Club International - frequent marketing program, travel agency consortia, Global FIT, Groups Online and Best Business Worldwide programs along with participation in major international trade fairs.

Best Western International is the worlds largest hotel chain with more than 4,000 hotels in 80 countries and territories. Best Western is a membership association of independently owned and operated hotels that provides marketing, reservations and operational support to its members

HFTP Hosts the 3rd Annual Hospitality Technology Professionals Forum

Hospitality Financial and Technology Professionals (HFTPR) will be hosting a one-day forum on hospitality technology designed to encourage participants to discuss important industry issues amongst each other. The Hospitality Technology Professionals Forum will be held on Friday, November 8 at the IH/M&RS located at the Jacob K. Javits Convention Center in New York.

The one-day forum is geared towards senior-level technology professionals in clubs, hotels, resorts and other hospitality-related businesses. For each session, an industry expert will introduce and provide a brief overview of the topic and will then facilitate an open discussion among attendees. The idea behind the forum is to allow attendees to participate in interactive and educational dialogues in an informal environment. Topics will include: Data and Internet Integrity, High Speed Internet Access (HSIA) and Customer Relationship Management (CRM).

Online registration is available at www.hftp.org. The early registration deadline is Friday, October 25, 2002. For more information, contact Angie Greer, HFTP education director, at (800) 646-4387 ext. 27 or (512) 249-5333 ext. 27 or by e-mail at education@hftp.org.

The International Hotel/Motel & Restaurant Show (IH/M&RS) will be held November 9-12 at the Jacob K. Javits Convention Center and will host over 45,000 attendees and 2,000 exhibitors for four days of concentrated and intense business. Show hours are 10 a.m. - 5 p.m. from Saturday, November 9 through Monday, November 11, and 10 a.m. - 3 p.m. on Tuesday, November 12. Please visit www.ihmrs.com for further details.

Based in Austin, Texas, HFTPR is the professional association for financial and technology personnel working in hotels, resorts, clubs, casinos, restaurants, and other hospitality-related businesses and has produced HITEC for thirty years. 

The association provides continuing education and networking opportunities to more than 4,300 members around the world. HFTP also administers the examination and awards the certification for the Certified Hospitality Accountant Executive (CHAE) and the Certified Hospitality Technology Professional (CHTP) designations. HFTP has been serving the hospitality industry since 1952